REAL ESTATE AND CAPITALIZED INTEREST

3 Months Ended

Mar. 31, 2025

Real estate consists of the following (in thousands):


	As of
	March 31, 2025		December 31, 2024
Homes completed and under construction (1)	$	2,454,275	$	2,375,639
Finished home sites and home sites under development (2)	3,346,679		3,353,136
Total	$	5,800,954	$	5,728,775

(1)Includes the allocated land and land development costs associated with each lot for sold and unsold homes.

(2)Includes raw land, land held for development and land held for sale, less impairments, if any. We do not capitalize interest for inactive assets, and all ongoing costs of land ownership (i.e. property taxes, homeowner association dues, etc.) are expensed as incurred.

Subject to sufficient qualifying assets, we capitalize our development period interest costs incurred to applicable qualifying assets in connection with our real estate development and construction activities. Capitalized interest is allocated to active real estate when incurred and charged to Cost of closings when the related property is delivered. A summary of our capitalized interest is as follows (in thousands):


	Three Months Ended March 31,
	2025		2024
Capitalized interest, beginning of period	$	53,678	$	54,516
Interest incurred	14,714		12,925
Interest expensed	—		—
Interest amortized to cost of home and land closings	(11,285)		(13,214)
Capitalized interest, end of period	$	57,107	$	54,227